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mergers and acquisitions have had on the automobile sector over the years. The author examines the benefits of the Daimler/Chrysler merger and exactly how the approach provided an optimistic impact on the resulting organization. There was 1 source used to complete this paper.
Over the history of organization, mergers and acquisitions have been a fact of life. Whether they were done through a mutually agreed upon mixing up, or absorbed with aggressive measures a merger or acquisition entails two or more businesses coming collectively and becoming 1. Mergers provide many great elements to the final organization, but may also presents a few difficulties in the way of power struggles, workforce figures and last production desired goals.
The automobile market has depended on mergers for quite some time to allow the field to accommodate the industry needs. Because new designs were necessary, market saturations occurred, and financial things to consider realized, the use of mergers and acquisitions inside the automobile industry has supplied positive final results.
One such combination, the Daimler/Chrysler blending proved to be a positive step for the two companies although it knowledgeable some adjustments along the way. For the most part the combination provided financial power, design and style abilities and accomplishment of goals to get the new merged company.
The explanation for mergers through this industry were often industry specific. The auto industry has grown through various changes over the years. When the industry first began to evolve there was hundreds of car companies that have been competing for the market customers. Many of them would not have an annual production of more than 1, 500 vehicles.
Because the sector continued to grow and customers continued to purchase product the need for more designs began to surface. The look and advancement an automobile has always been time consuming and expensive. This is certainly one reason that the market has seen as many mergers as it features. When two companies required to expand all their product line and did not have the money to handle independent design and development costs for this purpose they might merge with each other and pool their helpful that goal.
It offered the ability to continuously reinvent automobiles with better safety gear, more modern designs, ergonomic features and other issues that built the consumer wish to keep updating and trading into fresh models. This helped the industry stay alive.
One more aspect of the industry that encouraged mergers and acquisitions was the marketplace saturation aspect. As the market became even more saturated it has become evident that the companies that had been smaller can be squeezed out of business. The smaller companies sought out global companies to merge with to safeguard their employees and their earnings.
The industry hit their peak throughout the 1970s and since then it offers tapered off and at moments struggled to be afloat. Cars are currently made to last longer than in the past and the replacement unit need has become lowered because of it.
Industry standards always improve and environmentalist teams push pertaining to stricter and stricter standards when it comes to emissions. All of these elements make that essential to still design new models that can be quite expensive.
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